Paper Product Manufacturing in Canada Industry Market Research Report from IBISWorld Has Been Updated
New York, NY (PRWEB) December 17, 2014 -- The Paper Product Manufacturing industry has experienced relatively stable growth over the five years to 2014, with revenue anticipated to increase. However, a low recessionary base has bolstered much of this growth. Overall, the Paper Product Manufacturing industry and the Canadian forest products sector in general have declined over the past decade because of falling paper consumption and high import competition. Regardless of some negative factors, the industry has experienced moderate growth in recent years as consumer confidence has grown, which has translated to improved demand for discretionary paper products.
According to IBISWorld Industry Analyst Britanny Carter, “While revenue has recovered over the past five years, profit has contracted due to price-based competition from imports and rising input costs.” For example, paper products are manufactured using wood pulp and paper rolls and, over the five years to 2014, the world price of wood pulp is projected to grow, raising industry purchase costs and slimming margins. Profit, measured as earnings before interest and taxes, is consequently anticipated to fall, spurring manufacturers to steadily consolidate operations. Paper product manufacturers have also heavily invested in industrial machinery to bolster efficiency and improve returns.
The growth from the past five years is expected to stop in the coming years as the Paper Product Manufacturing industry is projected to contract. “Industry operators will continue to face competition from imports and profit margins will stay low despite increased manufacturing efficiency,” says Carter. Falling wood pulp prices will provide a short-term boost to profit margins, however the industry is not anticipated to return to long-term growth. In addition, consumer demand for paper products and cigarettes, a major downstream revenue source, is anticipated to continue falling. Overall, in the five years to 2019, IBISWorld forecasts that industry revenue will slowly decline at an average annual rate.
For more information, visit IBISWorld’s Paper Product Manufacturing in Canada industry report page.
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IBISWorld industry Report Key Topics
This industry manufacturers paper products such as labels, playing cards, wrapping paper, cigarette paper, paper filters, egg cartons, food trays and other miscellaneous paper products. This industry generally produces all paper products that are not included in other paper converting industries.
Industry Performance
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Industry Life Cycle
Products & Markets
Supply Chain
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Globalization & Trade
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Market Share Concentration
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About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US and Canadian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.
Gavin Smith, IBISWorld, +1 (310) 866-5042, [email protected]
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